diff --git a/hw/s390x/s390-pci-bus.c b/hw/s390x/s390-pci-bus.c
index ab442f17fb..8b0f3ef120 100644
--- a/hw/s390x/s390-pci-bus.c
+++ b/hw/s390x/s390-pci-bus.c
@@ -747,13 +747,14 @@ static void s390_pci_iommu_free(S390pciState *s, PCIBus *bus, int32_t devfn)
     object_unref(OBJECT(iommu));
 }
 
-S390PCIGroup *s390_group_create(int id)
+S390PCIGroup *s390_group_create(int id, int host_id)
 {
     S390PCIGroup *group;
     S390pciState *s = s390_get_phb();
 
     group = g_new0(S390PCIGroup, 1);
     group->id = id;
+    group->host_id = host_id;
     QTAILQ_INSERT_TAIL(&s->zpci_groups, group, link);
     return group;
 }
@@ -771,12 +772,25 @@ S390PCIGroup *s390_group_find(int id)
     return NULL;
 }
 
+S390PCIGroup *s390_group_find_host_sim(int host_id)
+{
+    S390PCIGroup *group;
+    S390pciState *s = s390_get_phb();
+
+    QTAILQ_FOREACH(group, &s->zpci_groups, link) {
+        if (group->id >= ZPCI_SIM_GRP_START && group->host_id == host_id) {
+            return group;
+        }
+    }
+    return NULL;
+}
+
 static void s390_pci_init_default_group(void)
 {
     S390PCIGroup *group;
     ClpRspQueryPciGrp *resgrp;
 
-    group = s390_group_create(ZPCI_DEFAULT_FN_GRP);
+    group = s390_group_create(ZPCI_DEFAULT_FN_GRP, ZPCI_DEFAULT_FN_GRP);
     resgrp = &group->zpci_group;
     resgrp->fr = 1;
     resgrp->dasm = 0;
@@ -824,6 +838,7 @@ static void s390_pcihost_realize(DeviceState *dev, Error **errp)
                                            NULL, g_free);
     s->zpci_table = g_hash_table_new_full(g_int_hash, g_int_equal, NULL, NULL);
     s->bus_no = 0;
+    s->next_sim_grp = ZPCI_SIM_GRP_START;
     QTAILQ_INIT(&s->pending_sei);
     QTAILQ_INIT(&s->zpci_devs);
     QTAILQ_INIT(&s->zpci_dma_limit);
diff --git a/hw/s390x/s390-pci-vfio.c b/hw/s390x/s390-pci-vfio.c
index c9269683f5..bdc5892287 100644
--- a/hw/s390x/s390-pci-vfio.c
+++ b/hw/s390x/s390-pci-vfio.c
@@ -305,13 +305,17 @@ static void s390_pci_read_group(S390PCIBusDevice *pbdev,
 {
     struct vfio_info_cap_header *hdr;
     struct vfio_device_info_cap_zpci_group *cap;
+    S390pciState *s = s390_get_phb();
     ClpRspQueryPciGrp *resgrp;
     VFIOPCIDevice *vpci =  container_of(pbdev->pdev, VFIOPCIDevice, pdev);
 
     hdr = vfio_get_device_info_cap(info, VFIO_DEVICE_INFO_CAP_ZPCI_GROUP);
 
-    /* If capability not provided, just use the default group */
-    if (hdr == NULL) {
+    /*
+     * If capability not provided or the underlying hostdev is simulated, just
+     * use the default group.
+     */
+    if (hdr == NULL || pbdev->zpci_fn.pfgid >= ZPCI_SIM_GRP_START) {
         trace_s390_pci_clp_cap(vpci->vbasedev.name,
                                VFIO_DEVICE_INFO_CAP_ZPCI_GROUP);
         pbdev->zpci_fn.pfgid = ZPCI_DEFAULT_FN_GRP;
@@ -320,11 +324,41 @@ static void s390_pci_read_group(S390PCIBusDevice *pbdev,
     }
     cap = (void *) hdr;
 
+    /*
+     * For an intercept device, let's use an existing simulated group if one
+     * one was already created for other intercept devices in this group.
+     * If not, create a new simulated group if any are still available.
+     * If all else fails, just fall back on the default group.
+     */
+    if (!pbdev->interp) {
+        pbdev->pci_group = s390_group_find_host_sim(pbdev->zpci_fn.pfgid);
+        if (pbdev->pci_group) {
+            /* Use existing simulated group */
+            pbdev->zpci_fn.pfgid = pbdev->pci_group->id;
+            return;
+        } else {
+            if (s->next_sim_grp == ZPCI_DEFAULT_FN_GRP) {
+                /* All out of simulated groups, use default */
+                trace_s390_pci_clp_cap(vpci->vbasedev.name,
+                                       VFIO_DEVICE_INFO_CAP_ZPCI_GROUP);
+                pbdev->zpci_fn.pfgid = ZPCI_DEFAULT_FN_GRP;
+                pbdev->pci_group = s390_group_find(ZPCI_DEFAULT_FN_GRP);
+                return;
+            } else {
+                /* We can assign a new simulated group */
+                pbdev->zpci_fn.pfgid = s->next_sim_grp;
+                s->next_sim_grp++;
+                /* Fall through to create the new sim group using CLP info */
+            }
+        }
+    }
+
     /* See if the PCI group is already defined, create if not */
     pbdev->pci_group = s390_group_find(pbdev->zpci_fn.pfgid);
 
     if (!pbdev->pci_group) {
-        pbdev->pci_group = s390_group_create(pbdev->zpci_fn.pfgid);
+        pbdev->pci_group = s390_group_create(pbdev->zpci_fn.pfgid,
+                                             pbdev->zpci_fn.pfgid);
 
         resgrp = &pbdev->pci_group->zpci_group;
         if (cap->flags & VFIO_DEVICE_INFO_ZPCI_FLAG_REFRESH) {
diff --git a/include/hw/s390x/s390-pci-bus.h b/include/hw/s390x/s390-pci-bus.h
index 9941ca0084..8664023d5d 100644
--- a/include/hw/s390x/s390-pci-bus.h
+++ b/include/hw/s390x/s390-pci-bus.h
@@ -315,13 +315,16 @@ typedef struct ZpciFmb {
 QEMU_BUILD_BUG_MSG(offsetof(ZpciFmb, fmt0) != 48, "padding in ZpciFmb");
 
 #define ZPCI_DEFAULT_FN_GRP 0xFF
+#define ZPCI_SIM_GRP_START 0xF0
 typedef struct S390PCIGroup {
     ClpRspQueryPciGrp zpci_group;
     int id;
+    int host_id;
     QTAILQ_ENTRY(S390PCIGroup) link;
 } S390PCIGroup;
-S390PCIGroup *s390_group_create(int id);
+S390PCIGroup *s390_group_create(int id, int host_id);
 S390PCIGroup *s390_group_find(int id);
+S390PCIGroup *s390_group_find_host_sim(int host_id);
 
 struct S390PCIBusDevice {
     DeviceState qdev;
@@ -370,6 +373,7 @@ struct S390pciState {
     QTAILQ_HEAD(, S390PCIBusDevice) zpci_devs;
     QTAILQ_HEAD(, S390PCIDMACount) zpci_dma_limit;
     QTAILQ_HEAD(, S390PCIGroup) zpci_groups;
+    uint8_t next_sim_grp;
 };
 
 S390pciState *s390_get_phb(void);
